Club news

COVID-19: THE FINANCIAL COST IN LA LIGA

05 Apr 2020According to a report from Marca, La Liga will lose €956.6 million if the rest of matches in Europe and the local competition aren’t played. The loss will be cut to €303 million playing behind closed doors.

The uncertainty continues around the world with the Covid-19 pandemic. UEFA had a meeting with the federations during the week, and the and Spanish federation did the same with the clubs and la liga, but there aren’t conclusions about what to do with the tournaments as it isn’t know when it will be safe to play football again.

The Spanish government extended the self-isolation order for the second time and now runs until April 26., so the football clubs are aware that in the best-case scenario football will return until June, and probably will do it playing behind closed doors.

In the meantime, La Liga already calculated the cost of the pandemic. Marca reported that La Liga authorities made the estimations according to three scenarios: that the season is cancelled, that the remaining of games are played behind closed doors, and that the remaining of the season is played delayed and with public at the stands.

The cancelation of the season will cost €956.6 million to the Primera and Segunda clubs, €479.7 million will be the loss for the television contract, €182.6 come from the loss of revenue in European competitions and €147.4 for losing sponsorships. La Liga even presented a plan in which they are ready to assume the 53% of these losses of this scenario occurs, the remaining 47% would be absorbed by reducing the players’ wages.

The second scenario is that the remaining of La Liga 2019/20 could be disputed, but with the games played behind closed doors. La Liga calculated that the losses will be cut to €303.4 million, €88 million for the refund to season subscribers, €41.4 million are for the loss of ticket sales and €29.5 for losing sponsorships. The proposition of la liga is that the 54% of the losses are absorbed by the clubs and the remaining 46% by the players.

The third and final scenario is to end the season with public, which is the most remote case, the clubs will lose money because it will mean to delay the competition until July or August. And the delay will cost €156 million, led by a loss of €95.9 for differing the TV contract. The proposition of la liga is that the club will absorbed the 51% of the loss and the remaining 49% by the players.